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Do you charge % from sales?
Guys, I have no idea how to charge customers.
Sometimes they seem to be surprised my fee is so low.
One asked me to have a fee “performance based”. Does it mean I should add % from sales to my fee??Sorry if it sounds stupid!
I”d appreciate any help.
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1 Reply
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Charge a flat fee. If people have been surprised it’s so low start increasing it.
Add a set performance bonus on top of that. (Reach a certain roas or similar)I guess you’re in the UK. We sure know how to undercharge.
Problem I find with performance related pay or % of sales is a lot of it is down to the customer’s website, overall budget, branding, price point, speed of shipping etc etc. A host of things that you can’t control and chances are they don’t want to fix. If it looks prime and you’re sure it’s a great product or service and is gonna take right off add it on.
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Another option would be to charge an ‘ad serving fee’. Here, you charge a percentage of your client’s media spend.
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I charge flat fee for small accounts and % of media spend for large.
“Performance based” where you have to rely on the client or their employees to successfully do something (close a sale, follow up with a customer, etc) deals are usually horrible. They sound good in principle, and if your reputation as a ppc pro isn’t that established you might have to agree to a couple deals like this to incentivize clients to give you a shot, but I’ve never seen one of these deals end with both parties being happy.
Either it’s a failure from the start and nobody is happy, or it succeeds and one side decides the other side is making too much money and it’s unfair, causing friction.
Hope that helps.
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It doesn’t sound stupid at all. I typically charge a monthly retainer (to keep me/us onboard, dealing with the account reps and dealing with the client calls/emails/texts), percent on spend (launching and monitoring ads, dealing with comments, creating creatives, etc), and a performance “bonus” percentage (where we actually make the real money). I also charge flat fees for things like like UGC and landing page development with a minimum 20% mark up.
Sometimes it does vary case by case, but I always try to stick to the pricing that powers my business model. I’m also fully hands on and a lot of my clients are “big ideas” people, but have little knowledge on how to grow. Value your time, know what your worth, and charge it.
I’m always happy to help if you have a question about a client situation. DMs are open. I don’t want your money.
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